The General Agreement on Tariffs and Trade, commonly known as GATT, was established in 1947 and is considered one of the most significant international trade agreements of the 20th century. The GATT agreement came into existence primarily for the purpose of reducing trade barriers between countries by encouraging free trade. In this article, we will explore the history of the GATT agreement and its impact on global trade.
The primary objective of the GATT agreement was to promote trade liberalization and eliminate restrictions on international trade. The agreement was established at a time when the world was still recovering from the devastating effects of World War II. Countries were struggling to rebuild their economies and trade was seen as a vital component of economic growth and development.
The GATT agreement was designed to address the various trade barriers that existed between countries. It aimed to reduce tariffs and other trade barriers, which would help to increase international trade and promote economic growth. The agreement also sought to provide a framework for resolving trade disputes between countries.
Over the years, the GATT agreement evolved to reflect changes in the global economy. New rounds of negotiations were held to address emerging issues such as intellectual property rights, agriculture, and services trade. In 1986, the Uruguay Round of negotiations was launched, which led to the creation of the World Trade Organization (WTO) in 1995.
The WTO is now responsible for administering the rules and agreements of the GATT, and continues to promote free trade and reduce trade barriers between countries. The WTO has played a significant role in shaping the global economy, and has helped to increase economic growth and development around the world.
In conclusion, the GATT agreement came into existence primarily for the purpose of promoting trade liberalization and eliminating trade barriers between countries. The agreement was a response to the challenges of post-war economic reconstruction and has played a significant role in promoting economic growth and development around the world. The GATT agreement continues to be relevant today, and its legacy lives on through the work of the World Trade Organization.